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What are trade investments? - Accounts

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Question

What are trade investments?

Short Answer
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Solution

Non-current investments must be categorized as “Trade Investments” and “Other Investments” according to Schedule III. Neither Schedule III nor Accounting Standards define the phrase “trade investment.” 

Nonetheless, the phrase “trade investments” is typically used to refer to an investment made by one firm in the stock or debt of another in order to support the first company's operations. 

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Chapter 9: Financial Statements of Companies - SHORT ANSWER QUESTIONS [Page 9.54]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 9 Financial Statements of Companies
SHORT ANSWER QUESTIONS | Q 12. | Page 9.54
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